Federal Employee Travel: Per Diem Reimbursement Rates

Federal Employee Travel: Per Diem Reimbursement Rates

July 26, 2023
Federal Employee Travel: Per Diem Reimbursement Rates
Background
NSA rate may apply to just a specific city and not the entire
In the course of their duties, federal employees may engage
county that the city is within. In some rural areas, an NSA
in official travel within the continental United States
rate may apply to multiple counties. GSA’s website
(CONUS), outside of the continental United States
includes a Per Diem Lookup feature that allows users to
(OCONUS), and to foreign locations. When engaging in
view per diem rates by location.
approved official travel, federal employees may make use
of per diem reimbursements. Per diem is one method
GSA only considers the ADR from properties that meet
federal agencies use to reimburse the subsistence expenses
certain criteria. GSA’s criteria include geography (i.e., ZIP
employees incur during official travel. The maximum daily
codes to which federal employees travel), fire-safe
reimbursable amount available to federal employees varies
certification, and various property demographics. GSA also
by location. Federal per diem reimbursements include a
accounts for seasonal rate fluctuations when determining
maximum lodging allowance component and a meals and
lodging allowances.
incidental (M&IE) component.
GSA sometimes conducts a special review of an NSA
Continental United States Per Diem
outside of the established annual review process. To request
Rates
a special review, a Federal Agency Travel Manager, or an
The General Services Administration (GSA) sets per diem
equivalent in grade or title, must submit a signed letter on
rates for CONUS locations, which include the contiguous
agency stationary stating that the current rate is insufficient
48 states and the District of Columbia (5 U.S.C. §5702).
along with relevant information on the geographical area to
be reviewed.
Lodging Allowance
GSA sets a standard rate for the daily lodging allowance
If there is no lodging available at the per diem rate
that applies to about 85% of counties in the CONUS. The
provided, federal employees may request that their agency
standard rate applies to areas that are less frequently
approve an actual expense reimbursement, which may
traveled by federal employees and are referred to as
increase the amount that the employee may be reimbursed
standard CONUS locations. The standard CONUS lodging
up to 300% (rounded to the next higher dollar) of the
rate for FY2023 is $98. GSA reviews the standard rate on
applicable maximum per diem rate (41 C.F.R. §301-
an annual basis.
11.303).
GSA uses a travel industry metric, the average daily rate
Meals and Incidental Expenses
(ADR), to determine lodging per diem rates. Lodging per
The M&IE component of the per diem reimbursement
diem rates have been based on the ADR, less 5%, since
system is intended to cover the cost of meals and incidental
FY2005. The ADR is based on a property’s room rental
travel expenses incurred by federal employees during
revenue divided by the number of rooms rented as reported
approved official travel. GSA has reviewed M&IE rates
by the hotel property. Lodging taxes are not included in the
every three years since FY2016. M&IE rates include taxes
CONUS lodging allowance rate and are to be reimbursed as
and tips, so travelers will not be reimbursed separately for
a miscellaneous travel expense. For any official travel,
those expenses.
federal employees must provide a receipt to substantiate
claimed travel expenses for lodging.
M&IE reimbursement rates vary by the location of travel.
For the first and last day of official travel, employees
If a federal agency determines that a standard rate is not
receive 75% of the daily total M&IE rate for the temporary
sufficient in a specific locality to properly reimburse its
duty travel location. GSA’s Per Diem Lookup webpage
employees, then the agency may request that GSA conduct
allows travelers to look up a specific location to see the
a study on that locality to determine whether it should
amount listed for M&IE total, breakfast, lunch, dinner,
become a non-standard area (NSA). Per diem rates for
incidentals, and first and last day of travel.
NSAs are higher than the standard per diem rate. If GSA’s
study determines that a change should be made, then a
Outside of the Continental United States
change will be implemented as GSA deems appropriate.
Per Diem Rates
GSA reviews and updates NSAs annually using ADR data.
The Defense Travel Management Office (DTMO), a
There are 316 NSAs as of FY2023.
subcomponent of the Department of Defense (DOD), sets
the rates for federal employees engaging in approved
NSAs are generally comprised of one county. In some
official travel to non-foreign locations overseas, which
cases, an NSA rate may apply to an area larger than one
includes Alaska, Hawaii, Guam, and Puerto Rico. These
county, such as in a metropolitan area. Occasionally, an
locations are also referred to as OCONUS locations.
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Federal Employee Travel: Per Diem Reimbursement Rates
DTMO’s website includes a Per Diem Rate Lookup feature
Lodging Allowance
that allows users to view per diem rates by OCONUS
The Office of Allowances reviews all per diem rates that
location.
are denominated in a foreign currency on a monthly basis to
assess the effect of exchange rate fluctuations. The Office
Lodging Allowance
of Allowances maintains a virtual platform called
Under 5 U.S.C. §5702, the President (or his or her
eAllowances to record information regarding rate
designee) sets the OCONUS per diem rate. In 1955,
adjustments. The Office of Allowances’ website allows
Executive Order 10621 delegated this authority to the
travelers to search per diem rates by country or by the post
Secretary of Defense. DOD established DTMO in 2011
name of interest. In this context, post refers to the place
(DOD Instruction 5154.31), including the Per Diem Travel
designated as the official station of the employee,
and Transportation Allowance Committee (PDTATAC).
regardless of whether he/she is detailed elsewhere or resides
PDTATAC is the component of DTMO responsible for
at another place with the authorization or approval of the
setting per diem rates for OCONUS locations.
head of his/her agency (DOS Standardized Regulations).
DTMO reviews lodging per diem rates annually and
Lodging allowances for foreign countries are based on the
maintains a table of the rate review schedule of OCONUS
cost of a single room, including any mandatory service
locations. DTMO collects and analyzes hotel data to set
charges and taxes, reported in the DS-2026. Travelers to
lodging allowance rates. To be considered, hotels must
foreign locations are encouraged by the Office of
meet certain criteria. Specifically, hotels must be included
Allowances to request information on hotel discounts for
in a list approved by the Federal Emergency Management
U.S. government employees. If there is a major event that
Agency (FEMA). The data collected for each eligible hotel
makes the established per diem rate at a given location
includes the price of a single room, seasonal rate variations,
obsolete (e.g., visits from the President of the United States,
discounts available to government travelers, and the number
summits, and major conferences), travelers may be
of rooms at the collected price.
approved for an actual expense reimbursement of up to
300% of the published per diem rate. In some
Agencies may request a rate change outside of the
circumstances, the Office of Allowances may make a short-
established rate review schedule, referred to as an Out-of-
term change to the per diem rate to accommodate major
Cycle (OOC) Rate Review, by submitting a letter including
fluctuations in rates.
(1) the location, the insufficiency of the local per diem rate,
the number of government employees or uniformed service
If there are foreign locations without an established per
personnel impacted, and the number of times an actual
diem rate that federal employees travel to frequently,
expense allowance was used in the previous year by
travelers use the rate listed as other on the Office of
travelers to the location; (2) a complete Hotel and
Allowances’ website. To establish per diem rates for a new
Restaurant Report (DS-2026) providing up-to-date price
area, the lead agency at the nearest post is required to
data from the location; and (3) documentation verifying all
collect and submit survey data for that location to the Office
price data reported in the attached DS-2026.Travelers may
of Allowances.
use an actual expense allowance while the OOC Rate
Review is processing.
Meals and Incidental Expenses
The M&IE maximum reimbursement rate for foreign areas
Meals and Incidental Expenses
is intended to cover the cost of meals and incidental travel
DTMO reviews restaurant data every three years to set
expenses incurred by federal employees during approved
M&IE rates. Selected restaurants must be reasonably priced
official travel. The Office of Allowances reviews the M&IE
and accessible to government travelers. For the first and last
rates for foreign areas on a monthly basis. These rates
day of official travel, employees receive 75% of the total
include taxes and tips. Laundry and dry-cleaning expenses
daily M&IE rate for the temporary duty travel location.
are included in the incidentals category of the M&IE rate.
The Office of Allowances’ website allows travelers to
Foreign Per Diem Rates
search M&IE rates by country or by the post name of
The Office of Allowances within the Department of State
interest.
(DOS) sets per diem rates monthly for federal employees
traveling to foreign locations. Updated per diem rates
Taylor N. Riccard, Analyst in Government Organization
become effective on the first of each month.
and Management
IF12457

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Federal Employee Travel: Per Diem Reimbursement Rates

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